participating interest

participating interest An interest held by one organization in the shares of another organization, provided these shares are held on a long-term basis for the purpose of exercising some measure of control or influence over the organization's activities. The UK Companies Act (1985) lays down that a holding of 20% or more of the shares of an organization constitutes a participating interest, unless contrary indications are given. Options to buy shares are normally treated as an interest in these shares. See also controlling interest; minority interest; significant influence.